The General Services Administration (GSA) designated 443 “non-core” federal properties for “disposition” across 47 states, Washington, D.C., and Puerto Rico that represent almost 80 million rentable square feet—12 times the size of the Pentagon. The GSA estimates that selling these properties could save more than $430 million in annual operating costs. The plan is being developed at a time when commercial real estate is still reeling from higher interest rates and the COVID-19 pandemic. The announcement follows the Department of Government Efficiency’s (DOGE) elimination of nearly 750 leases, potentially shuttering Internal Revenue Service help centers weeks before tax returns are due and leaving prosecutors who handle drug cases near the border without office space. There are approximately 3,000 federal leases that are currently in their “soft term” phase—meaning they can be terminated without penalty or buyout.
